Essay on Sample Final Spring

2737 Words Jan 21st, 2014 11 Pages
sample final spring10

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. The adage, "There is no such thing as a free lunch," is used to illustrate the principle that
a.|goods are scarce.|
b.|people face tradeoffs.|
c.|income must be earned.|
d.|households face many decisions.|

____ 2. Moira decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is
a.|the value of the knowledge she would have received had she attended class.|
b.|the $30 she could have earned if she had worked at her job for those two hours.|
c.|the value of her nap less the value of attending class.|
d.|nothing, since she would valued sleep more than attendance at
…show more content…
One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?
a.|GDP increases by $2.00.|
b.|GDP increases by $3.00.|
c.|GDP increases by $5.00.|
d.|GDP increases by $6.00.|

____ 9. Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2007, Quality Motors produced $20 million worth of automobiles, with $12 million in sales to Americans, $6 million in sales to Canadians, and $2 million worth of automobiles added to Quality Motors’ inventory. The transactions just described contribute how much to U.S. GDP for 2007?
a.|$12 million|
b.|$14 million|
c.|$20 million|
d.|$34 million|

Table 23-5

The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2006.

Year|PriceofWaffles|QuantityofWaffles|PriceofPancakes|QuantityofPancakes|
2005|$2|100|$1|100|
2006|$2|120|$2|150|
2007|$3|150|$3|200|
2008|$4|180|$3|220|

____ 10. Refer to Table 23-5. In 2007, Batterland’s real GDP was
a.|$540.|
b.|$700.|
c.|$810.|
d.|$1050.|

____ 11. Refer to Table 23-5. In 2008, Batterland’s real GDP was
a.|$540.|
b.|$800.|
c.|$930.|
d.|$1380.|

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